honour clause states that the agreement is not a contract such as:
to the preparation of a formal contact.
it is the intention of one or both parties not to make a binding
agreement then that agreement cannot be a contract. If the parties to
an agreement expressly declare that the agreement is binding
in honour only there is no contract. A common clause states "subject
to contract" or "subject to the preparation of a formal
question to be asked in determining whether or not the agreement is a
contract is "What was the intention of the parties?"